Press reports are crowded with headlines about the rise in commercial bankruptcy filings, which increased yet again this year.1 High interest rates, inflation, delayed effects of COVID, and huge corporate debt contributed to the jump in corporate insolvency filings. More are anticipated.
In this edition of Restructuring Watch, we reflect on the first court decision on the moratorium procedure, some recent schemes and restructuring plans, the lifting of the remaining pandemic-related restrictions for commercial landlords alongside the introduction of the Commercial Rent (Coronavirus) Act 2022 and an extension of the UK directors’ disqualification regime.
Corbin & King: First Judicial Consideration of the CIGA moratorium
On 30 April 2020 took effect Royal Decree-law 16/2020 of 28 April 2020, which includes a new set of measures within the judicial system to deal with the COVID-19 situation.
We highlight below the main measures adopted below:
1. Procedural measures
- Part of August is made a working month, on an exceptional basis
The 11th to the 31st of August 2020 will be working days for all judicial proceedings. Saturdays, Sundays and public holidays are excluded except for proceedings for which these are already working days.
As the novel coronavirus (COVID-19) pandemic continues to devastate economies worldwide, we’re seeing a wave of Chapter 11 bankruptcy filings. These filings, which provide protection to companies as they reorganize their businesses so creditors may be paid over a period of time, have surged 26% in April (up from the 444 filings in April 2019).
The economic impact has been far-reaching. Notable examples include:
Our regular round-up of recent developments and topics for your radar, news on training and networking events for in-house counsel, and an update on our legal tech initiatives.
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When we began analysing in depth the possibility of Britain exiting the European Union, 18 months prior to the June 2016 referendum, the HERBERT businessSMITH FREEHILLS consensus w07as very muchSECTION TITLE that Brexit was a remote prospect that either would never happen or not matter.
Fast forward just over two years and the reality could not be more different. In this updated edition of our Brexit legal guide, we take stock of the present situation, summarising the key developments since last year's vote and what is to be expected in the months ahead. 10 33 99
Regardless of a company’s success or confidence in its strategy, management, and board, there are few situations public companies face that are more daunting than an unsolicited approach by an activist investor. And with activist activity continuing to rise—2018 saw a record number of companies targeted by activists, a record number of activist campaigns launched, a record number of board seats won, and a rising bench of first-time activists—all companies need to be prepared.
When one of your customers files bankruptcy, it can cause significant disruption in your own business, especially where you do substantial business with that customer, or it files for bankruptcy owing you a substantial amount of money. The impact on your business includes not only the prospect of not being paid or receiving very little on unpaid invoices but also the loss of future business from the bankrupt customer.
Those who file UCC records often provide the required collateral description on an attached schedule or exhibit rather than the designated field on the financing statement. This well-established and accepted practice can save time in the filing process and reduce transcription errors. When providing the description using an attached document, the financing statement collateral field will typically incorporate the document by reference using words such as “See Schedule A attached” or words to that effect.